Tenancy fraud costing landlords £266m a month

This aligns with previous estimates that also state 5% of rental properties are rented to fraudsters, and while this might seem like a small number, the latest available figures from the UK government* show that there are just over 5.5m private rental properties in Britain. As such, 5% equates to more than 275,000 that are rented to fraudsters. 

At the current average monthly rent value of £1,379*, this suggests that tenancy fraud is costing British landlords an estimated £379.8m per month. 

LegalforLandlords’ survey goes on to reveal that 70% of landlords who have fallen victim to tenancy fraud were unable to retrieve any of the financial losses that resulted. This means that of the £379.8m lost to fraud, £265.8m is never seen again. This figure is equivalent to £3.2bn a year. 

The most common types of tenancy fraud

The survey reveals the most common form of tenancy fraud is defaulting on rent, which accounts for 70% of the fraud endured by respondents. 

Defaulting on rent commonly refers to tenants moving into a property with the intention of living rent-free for as long as possible. Once the fraud is detected, it essentially becomes a waiting game as the landlord fights to get the fraudster tenant evicted. 

Previous research from LegalforLandlords recently highlighted that the average timeline for repossession now stands at more than 26 weeks. 

20% of landlord respondents state that they have been victims of illegal sublets, a common scam in which tenants sublet their rental property to a third-party without having any legal right to do so. 

Illegal subletting causes all sorts of serious issues for landlords. One common example is when they try to chase rent arrears only to find an entirely different person living in the property, with no sign of the original tenant. 

8% of landlords report having fallen victim to fake financial information. For example, prospective tenants create false employment or financial documents in order to fool landlords into believing they can reasonably afford to pay the monthly rent. 

Other common rental scams include ID fraud - in which prospective tenants use fake identities, credit reports, or documents such as bank statements in order to rent a property under a false identity - and money wire transfer scams. 

A typical money wire transfer scam will see the tenant issue a cheque for a larger amount than has been requested, and then ask for the money to be sent back just in time for the original cheque to bounce. 

Tenancy fraud red flags

Common red flags of a fraudster tenant include having a limited or questionable online footprint, suspicious or strange references or referees, and attempts to hide or disguise background checks. Landlords and agents should also be alert to the presence of any Politically Exposed Persons (PEPs) or any individuals who might be under sanction, either personally or as a result of their nationality. 

Sim Sekhon, Group CEO at LegalforLandlords, commented: 

“Tenancy fraud is a growing and increasingly complex issue across the private rental sector, and these figures highlight just how significant the financial impact has become for landlords. While many scams are becoming more sophisticated, a large proportion can still be prevented through thorough, fastidious checks and robust legal processes at the very start of a tenancy. 

The reality is that tenant fraud is now as much a technology challenge as it is a procedural one. Traditional document-based referencing - such as payslips or bank statements - is becoming less reliable, as AI tools can now generate highly convincing fraudulent documents in a matter of minutes. 

As a result, the industry is shifting towards direct data verification, including Open Banking, HMRC income validation and forensic analysis of financial records. This is where innovation is playing a crucial role, helping landlords and agents move beyond surface-level checks to truly verify tenant credibility. 

At the same time, wider market pressures are increasing the risk. With rents rising, affordability tightening and possession timelines extending, the cost of getting tenant selection wrong is higher than ever. In this environment, having the right agreements, documentation and processes in place is critical, not only to prevent fraud, but to ensure landlords are in the strongest possible legal position should issues arise. 

Ultimately, prevention and preparation are key. Landlords and agents who embrace more advanced verification methods and put the right protections in place will be far better equipped to mitigate risk, avoid costly disputes and protect their investments in an increasingly challenging market.”

Survey results, data tables, and sources 

• *Survey of 897 UK landlords carried out by ProperPR on behalf of LegalforLandlords via consumer research platform Find Out Now (16th  March 2026).

• *Estimated number of private rental homes in Great Britain sourced from gov.uk (England - 2024 latest available), Stats Wales (Wales - 2024 latest available), and gov.scot (Scotland - 2023 latest available)

• *Estimated rental occurrence of 5% of rental properties sourced from HomePPL.

• *Average rent value sourced from the Office for National Statistics (Jan 2026 latest available)

• Full survey results and data tables can be viewed online, here